Draft law on labour inspections
The draft in its current form provides that a decision of a district labour inspector establishing an employment relationship will be appealable:
- an entrepreneur will be able to lodge an appeal within seven days of the date of delivery of the appeal to the chief labour inspector.
- if the appeal is not upheld by the chief inspector, the entrepreneur will be able to lodge an appeal within a one month period with the labour court, which will examine the correctness of the determination of the existence of an employment relationship.
Consequences of a decision establishing the existence of an employment relationship
The decision of the district labour inspector will be enforceable immediately, i.e., even before the entrepreneur's appeal is considered, the entrepreneur will have to comply with the above-mentioned decision, which will entail new obligations for the entrepreneur related to employment, including keeping records of working time, ensuring employee rights (including holiday leave), paying social security contributions at the rate applicable to employees, and health and safety obligations (preliminary and periodic medical examinations).
The entrepreneur will not be obliged to pay social security contributions and tax advances until the decision on reclassification becomes final (and in the event of an appeal, until the date of a final court ruling).
According to the current wording of the draft, civil law contracts in force at the time of the inspection may be subject to inspection, but also those that are no longer in force. Entities that have already ceased operations or have not employed anyone during the last year may also be subject to a labour inspection.
The effects of the decision may therefore be retroactive. The decision itself will determine all relevant elements of the employment relationship, including the amount of remuneration for work and the date of establishing the existence of the employment relationship.
In addition to extending the powers of labour inspectors, the draft also provides for the extension of cooperation between the labour inspectorate and the Social Insurance Institution (ZUS), including in the field of information sharing, as part of the inspections carried out by the labour inspectorate, and the possibility of remote inspections. The draft provides for an increase in the fines imposed on a person representing the employer, including in the case of concluding a civil law contract in place of an employment contract. Currently, the fine ranges from PLN 1,000 to PLN 30,000. According to the current wording of the draft, it will range from PLN 2,000 to PLN 60,000.
Stage: deliberations at the government level in cooperation with “social partners”
Planned entry into force: 1 January 2026
Audit of civil law contracts
The bill will still undergo amendment during the parliamentary stage of proceedings, but it is already worth starting preparations and reviewing agreements in terms of the reclassification risk. We recommend and offer support in conducting internal audits of civil law agreements and introducing appropriate changes before any possible inspections.
For further information please contact our experts.
